How to Handle a Denied First-Party Property Damage Claim

Few situations feel more frustrating than filing a property damage claim in good faith, only to receive a denial letter. After paying premiums for years, many policyholders expect their insurance company to step in when damage occurs. Instead, they’re often met with confusing explanations, partial denials, or outright refusals. 

We’ve seen how discouraging this moment can feel, especially when repairs are urgent, and costs keep piling up. If your business, home or personal property was damaged and your claim was denied, you don’t have to accept that answer without question. Reach out to us to talk through your options and get clarity on what comes next.

At SJP Sifers Jensen Palmer, we help people push back when insurance companies don’t live up to their obligations. If your claim was denied and you’re unsure what to do next, reach out to us to start the conversation. We work with policyholders throughout Kansas, Missouri, and New Mexico with denied or underpaid claims.

For attorneys with clients in this unfortunate situation, we are happy to work with you and your client.

Common Reasons Insurance Companies Deny First-Party Claims

Insurance companies rarely deny claims without offering a stated reason. These explanations can sound official and final, but they’re often open to challenge. We regularly help clients review denial letters and uncover issues that were overlooked, misapplied, or misrepresented during the claims process.

Below are some of the most common reasons insurers give for denying first-party property damage claims:

• Policy exclusions cited: Insurers may point to exclusions involving wear and tear, prior damage, or certain weather events. These exclusions are often applied too broadly, even when damage should be covered.

• Missed deadlines or late notice: Some denials rely on claims that notice wasn’t given quickly enough, even when the delay had little impact on the insurer’s investigation.

• Disputes over the cause of damage: Insurance companies may argue that the damage resulted from an uncovered cause rather than a covered event, such as a storm, fire, or water intrusion.

• Insufficient documentation: A claim may be denied because the insurer claims there wasn’t enough proof, even when photos, estimates, or reports were provided.

• Low damage assessments: In some cases, insurers acknowledge damage but undervalue repairs to justify a partial or effective denial.

These explanations don’t always tell the whole story. After reviewing the policy and claim file, our reliable attorney can often identify inconsistencies or weaknesses in the insurer’s position. Many denials aren’t the final word, even when they’re presented that way.

What to Do Immediately After Receiving a Denial

When a denial letter arrives, it’s natural to feel overwhelmed or angry. Still, the steps taken early on can make a meaningful difference in how a claim dispute unfolds. We help clients stay focused on actions that protect their rights and preserve valuable evidence.

After a claim is denied, consider these immediate steps:

• Review the denial letter carefully: Look for specific policy provisions, exclusions, or deadlines the insurer relies on. Vague explanations can signal problems with the denial itself.

• Request a complete copy of the policy: If you don’t already have it, ask for the full policy, including endorsements and amendments, so coverage language can be reviewed accurately.

• Document all damage thoroughly: Take updated photos and videos, gather repair estimates, and keep receipts for temporary fixes or mitigation efforts.

• Keep written records of all communication: Save emails, letters, and notes from phone calls with adjusters or insurance representatives.

• Avoid making recorded statements without guidance: Insurers may request statements after a denial. These can later be used to justify their decision.

Taking these steps doesn’t mean you’re escalating the situation unnecessarily. Instead, it puts you in a stronger position if the denial needs to be challenged. A first party claims attorney can review what’s already been done and advise on what still needs attention before moving forward.

Deadlines and Risks of Waiting Too Long

Time matters when a claim is denied. Insurance policies include strict deadlines for appealing decisions, submitting additional proof, or filing suit. Waiting too long to start working with a first-party claims attorney can limit available options, even when the denial was improper. We frequently remind clients about these common timing concerns:

• Contractual limitation periods: Many policies shorten the time allowed to file a lawsuit, sometimes to one or two years from the date of loss.

• Appeal or reconsideration windows: Some policies require formal appeals within a specific timeframe after denial.

• Evidence degradation: Damage can worsen or be repaired, making it harder to document original conditions later.

• Fading memories: Witness recollections and timelines become less reliable as time passes.

These risks don’t mean every denial requires immediate litigation. They do mean it’s important to talk with a first-party claims attorney sooner rather than later. Early guidance helps make sure important deadlines aren’t missed, and options remain open.

Reach Out to a First-Party Claims Attorney Today

A denied first-party property damage claim doesn’t have to be the end of the road. Many policyholders are surprised to learn how often denials can be challenged successfully with the right approach. We work with clients to review their situation, explain their options, and pursue the benefits their policies promised.

If you’ve been searching for an experienced first-party claims attorney who will take the time to review your policy and fight back against an unfair denial, we’re here to help. Reach out to us today to discuss your claim and take the next step forward.